University Loan Risk Prevention And Resolution Based On Agricultural Bank Of China Jilin Branch

Since 1999, the scale of domestic universities has been continuously enlarged and the enrollment has been increased rapidly to follow completely the national policy of education reform that the country increases intake of students, which lead to all kinds of original schooling and living facilities are far from meeting the demands of running schools. In order to ensure the normal development, universities continuously expand the construction of infrastructures, because of government's limited financial allocation and equity income, the serious shortage of fund earmarked for capital construction, the bank loan becomes the main source of universities solving the adequate fund earmarked for capital construction, and running school in debt has been a universal phenomenon in the development of universities. For their steady operation and considerable value-added business, university customers become good customers grasped actively by financial institutions; banks mostly meet the need of university load or take active marketing. When banks earn higher returns from the university loans, relieves the fund shortage to some extent, which promotes greatly the state higher education business and public good. Though bank loans promote the rapid development of higher education, with the continuous enlargement of universities'financing scale is getting larger and larger, the risk of university loan is very common and maybe increased gradually. While universities use bank loans must repay capital with interest, excess debt surely increases finance expense making the university's finance to burden with too much weight and influencing his normal expenditure of teaching and scientific research, and local university is established by local government, the approval process is relatively loose. If the valid solution is not used, the risk of university loan will be intensified gradually.Agricultural Bank of China Jilin Branch vigorously supports the development of higher education, selects universities, with good qualification, high comprehensive benefits, controllable risk, as the important partners, and according to the needs of universities, provides a certain amount financing support with different kinds. And from present characters and situation of Agricultural Bank of China Jilin Branch, because of large amount of university loan's financing scale, unreasonable loan contract, long-term use of short-term loans, the risk has initially appeared. Therefore, for Agricultural Bank of China Jilin Branch, the correct understanding of university loan and establishment of a scientific and effective risk prevention measures are imperative.This paper is based on the analysis of Agricultural Bank of China, Co.Ltd, Jilin Branch (hereinafter referred to as"Agricultural Bank of Jilin Province") regarding the risk of university loan as the research subject. By analyzing the legitimate use of university loans, shortage effective security, single source of repayment, long term loans, good asset quality, high comprehensive return and so on, this paper proposes the problems of present too fast growth of loan, universities'weak consciousness of managing loans, long-term use of short-term loans, not-so-fine decision, unreasonable loan contract etc. summarize the kinds of university loan risk from university, bank, government, and puts forward that in accordance with the risk model of university loan, strengthen the control of the amount of university loans and management of loan contract, taking a university's loan as a case, analyzes carefully the performance of university loan risk, further, analyzes the reason of university loan and the performance of university loan in the country, banks and its own, reveals the reason of university loan, at the beginning of that universities take capital constructions in debt, the risk of university loan is followed, with the liability scale expanded, the accompanying risk is increased, which includes various factors, and the factors inflect respects that followed, the background of enrollment policy, inadequate state financial allocation, thin risk consciousness, banks'insufficient attention of risk of university loans, lack regulation authorities'supervision and so on. Therefore, this paper puts forward some specific measures to prevent the risk of university loans based on Agricultural Bank of China Jilin Branch, from customers access, loan monitoring, risk management, constructions of risk system and so on.